Overpayment Explained
This is one of the easier terms to understand in the confusing world of mortgage jargon.
An overpayment is where you pay MORE than you need to each month.
Whilst for some this sounds like a happy dream, if you can do it then it usually makes financial sense.
The quicker you can pay off a mortgage the less you will need to pay, because remember that the interest payable on the balance of the mortgage is less when the mortgage amount is reduced.
Note that sometimes overpayments will incur penalty charges so you do need to understand what the terms of your mortgage are before making an overpayment so that you can do it understanding if there will be a penalty incurred.
Property Articles
We hope you find this mortgage glossary / explanation of mortgage terms useful. You might also be interested in our articles on a range of property related issues, a selection of which are listed below:- Home Reversion Plans
- Property Auction Glossary
- Cons of Buying Commercial Property
- Mortgage Comparison Tables Explained
- Equity Release Schemes
- Getting Ready for a Property Auction
- Mortgage FAQ
- Viewing a Property
- Purchasing a Penthouse
- Tips on Living in Spain
- Flexible Mortgage Features
- Home Information Pack Contents
- Relocation Agent FAQs
- Property Purchasing in Spain
- Why Buy in Cyprus
